About Us

DHFL Vysya Housing Finance Ltd. was incorporated on November 27, 1990 in its earlier name Vysya Bank Housing Finance Ltd. It commenced its operation in terms of Certificate for Commencement of Business No. 08/11409 dated November 27, 1990. Since then, it has a history of uninterrupted payment of dividend (except for the financial year 2003-04) , ever-increasing total assets and reserves. Return on equity has been increasing continuously. Capital adequacy ratio of the company is comfortable at 30.66% as on 31st March 2003, as against the requirement of 12% prescribed by the National Housing Bank.

lakhs and 708.07 lakhs respectively. Book value per share is at an attractive Rs.42.61.

Chairman’s Speech on the eve of 14th AGM

Performance during the year:
You are well aware that the management has changed w.e.f 02-07-03 and therefrom since three months prior to the date of change of management and three months thereafter there was quite a lull in the operational activities due to change over which could restart only at the end of the year. In the light of these developments you have to appreciate the performance of the Company for the year.

The incremental sanctions and disbursements of your company during the year stood at Rs. 22.67 crores and Rs. 18.03 crores, as compared to Rs.37.82 crores and Rs.33.75 crores during the previous year. The decrease was mainly due to the fact that your Company was going through a period of consolidation after the change in Management. Some of the Branch Managers left the organization and there were several follow up issues under the Share Purchase Agreement. The credit delivery system was streamlined and disbursements were centralized to improve the quality. It was thus a conscious decision to keep business at modest levels. Apart from the severe competition, the market witnessed a spate of pre-closures and transfer of housing loans to other banks/financial institutions to take advantage of the declining trend in interest rates. Your company was also affected to a great extent by this market driven phenomenon. As a result the aggregate outstanding under housing loans declined to 132.00 crores from Rs.170.61 crores in the previous year in spite of additional disbursements as mentioned above.

The profit after tax as of 31st March, 2004 stood at Rs. 3.19 crores as compared to Rs.4.70 crores for the corresponding previous year. While the fee and other income was maintained around the same level, the operating income showed a reduction from Rs. 25.51 crores to Rs. 19.46 crores due to reduction in outstanding portfolio of housing loans.

As per the Share Purchase Agreement ING Vysya Bank Ltd., has undertaken to take over specified overdue accounts as on 30-11-2002 if they are classified as NPA as at the end of 6 months and 12 months from the date of completion of change in Management. i.e. 2-07-2003. Your company has made a claim with ING Vysya Bank Ltd for assignment of NPAs under the above arrangement, to the extent of Rs. 8.16 crores. The Bank is in the process of verifying the data. As a result the gross NPA (%) and net NPA (%) as of 31st March, 2004 stood at 7.17 % and 6.24 % respectively against 3.47% and 2.33% respectively last year. When the assignment process is completed, the gross NPA (%) and net NPA(%) will come down to 0.99 % and 0.73 % respectively.

As per SPA your company has assigned NPA accounts as on 30-11-2002 for a consideration of principal amount due, minus provisions held by the company, and thus received Rs.4.35 crores from ING Vysya Bank Ltd. This has helped to improve the quality of assets in the books of the company.

Economic Scenario:
The year gone has witnessed good monsoon and the GDP is estimated around 6%. There is prediction of good monsoon for the current year also and the GDP for the current year is estimated around 7% The new government is in place at the center. However, the global economy was fraught with challenges and there is a pressure on interest rate.

Housing Finance Scenario:
With interest rates at the bottom level and fiscal incentives on housing continuing the momentum gained in the previous years is expected to continue. However, there is going to be a shift towards semi-urban and Rural areas, where the shortages in housing continues, as per the Census data for 2001 and government has placed priorities towards these areas.

Outlook for the future:
Focus for the current year would be to consolidate and increase the market share by way of aggressive marketing and new products and personalized service. Your Company has recently appointed marketing executives to penetrate into semi-urban and reasonably good rural areas adjoining the cities. I would like to emphasize that future strategy would be to explore avenues for raising low cost resources, increase the business volumes without compromising on quality.

Your Company is committed to Corporate Governance of the highest standards by being fair in all dealings with maximum transparency in disclosures and ensuring regulatory compliance at all times. We are committed to give the shareholders, investors and the public in general a clear picture of our current performance and future potential.

To conclude I wish to place on record our deep appreciation and gratitude to the National Housing Bank, our Bankers ING Vysya Bank Ltd., and investors. I also thank my colleagues on the Board for their support, wisdom and guidance. On behalf of the Board I sincerely thank you, the members of DHFL VHFL family for your continued support to the Company.

PROMOTERS

DHFL VYSYA HOUSING FINANCE LIMITED

The company was started by Vysya Bank Ltd. Known as ING Vysya Ltd at present with majority shareholding percentage of 85%. In July 2003 the said bank sold their majority holdings to Dewan Housing Finance Corporation Ltd., one of the leading private sector Housing Finance company (DHFL) in India. Now DHFL and its promoters together hold 91.2%, the balance is held by IDBI and a few with the Industrialist and Public sector.

DHFL had started its operation as a housing finance Company in 1984. Now, it is one of the leaders in the industry. The total assets of DHFL as on 31-03-2003 exceed Rs.1000 crore with net worth of Rs.119.90 crore. It has very eminent personalities in the Banking and Financial Sectors on the Board. The acquisition of majority share holding by DHFL is expected to result in greater focus and synergetic approach thereby enhancing the business potential for the company.

	Shri Kapil Wadhawan, Managing Director of Dewan Housing Finance Corporation Limited, has earned an enviable image in the world of financial services in a short span. Yet, the humility with which he carries himself is unmatchable. After, completing his graduation in India, he pursued Masters Degree in Business Administration in Finance from Edith Cowan University, Perth. With the entry of banks and  major financial institutions of the country, the challenge was towering. However, he has been successful in keeping up the pace with the increased competition. The Company achieved various milestones under his leadership like crossing of Rs. 1000 crores of cumulative disbursement, tie-up with Birla Sun-life for distribution of Insurance products. Mr. Wadhwan is visualizing Mortgage Finance as a specialized activity in India and in the long run put DHFL as a dominant Mortgage Bank in India. Under his able leadership as Chairman of DHFL Vysya Housing Finance, this company is also on a fast track.
	Shri R.Nambirajan, a seasoned banker with 42 years of experience including over 3 years as Managing Director of PNB Housing Finance Ltd., has taken over as Managing Director of the Company.
The other directors are:
	Shri. Sarang Wadhawan, M.B.A. in International Finance from Clark’s University, Boston, U.S.A. He is also Executive Director in DHFL.
	Shri R.S.Hugar, former Chairman of Corporation Bank and Global Trust Bank. He is also on the Board of DHFL, IPCA Laboratories.
	Shri Ashok Kumar Gupta, is a leading Chartered Accountant and Advocate. He is also on the Board of DHFL.
	Shri Bikram Sen, an experienced banker with extensive experience in Fixed Income and Risk Management.